ELWOOD — Just two weeks after 80 Elwood employees were let go when State Plating closed its doors, another 286 Elwood workers are losing their jobs.

On Thursday, Plastech Engineered Products Inc. released a letter explaining that the company would close on July 13 or within 14 days after that date.

The letter revealed that the company had filed Chapter 11 bankruptcy earlier this year. Elwood city officials learned of the closure just as employees did.

Bill Savage, Elwood’s director of Economic Development, said the city met with Plastech officials after the 60-day notice was issued.

“We just learned it yesterday,” he said. “The company here, we met with them yesterday, but the local people don’t know much about it because they’re in Chapter 11 bankruptcy.”

Local Plastech employees were unable to provide details of the closure on Friday and directed calls to the corporate offices. Repeated calls to the Plastech corporate offices were not returned.

Plastech is Madison County’s 18th largest employer, according to Chamber of Commerce for Anderson & Madison County statistics.

Elwood Mayor Merrill Taylor said there were rumors that another company might purchase Plastech before its closure date.

“I’ve heard there are a couple companies looking at it to purchase,” Taylor said. “I’m hopeful if someone buys it, they keep it open and keep the jobs we’ve got now. Like I say, we met with them yesterday and told them we would help anyway we can.”

State Rep. Terri Austin, District 35, also heard a rumor that closure was not certain.

“The information I have, and it is secondhand information, is that closure may or may not be imminent at this point,” Austin said. “My understanding is that the company could possibly be sold, but I don’t know if that’s true. We welcome the opportunity to try to help the company stay in business or if there is a new owner, to help maintain operations in Elwood.”

While the employees at State Plating were left without paychecks and severance packages, it was not yet known whether Plastech’s 286 employees would be given severance packages. “I’ve heard nothing about that,” Taylor said Friday.

Savage said he believed the company was operating successfully and continued to be productive, despite the looming closure.

“They’ve got orders to fill,” Savage said. “They’re actually working overtime like on Saturdays. Basically, this was a good plant, operation-wise. There wasn’t anything wrong with the plant. It’s just the corporation, and it had to do with the bankruptcy.”

The Herald Bulletin attempted to contact several Plastech employees. Those who could be reached were not authorized to discuss the closure.